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4most to develop 'green credit score' for SMEs

UK credit risk consultancy 4most has won Government backing to develop a green credit score that will offer cheaper financing to encironmentally conscious SMEs.

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4most to develop 'green credit score' for SMEs

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The Green Credit Score is being jointly developed by 4most, as well as boutique cleantech advisory firm Meckon, and international fintech lender, Swishfund. The project aims to deliver a comprehensive data set, credit risk analysis and scorecard, which 4most will make available to all lending institutions across the UK, including credit reference agencies and credit auto-decision-making platforms.

The Green Credit Score will inform SMEs of their current carbon impact, advise them of key risks to their business in the transition to a low carbon economy, and will provide them with the tools to help mitigate those risks, while reducing direct and indirect carbon emissions.

Ivelina Nilsson, client partner and head of climate change at 4most says: “This project will build a virtuous circle of measuring carbon footprints, providing risk-based funding and boosting climate action. To develop the Green Credit Score, we plan to gather data from potential borrowers to estimate the various aspects of climate change risk that they are exposed to.”

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